Like all businesses, contractors are facing an unprecedented threat to their livelihoods in the form of the COVID-19 pandemic. So, we wanted to understand the types and degrees of pressure being felt and the needs that are bubbling to the surface to give home improvement retailers, manufacturers and builders insight into how to best support this vital community.
Like many, contractors are feeling the pinch…
COVID-19 is a disruptive force on their business, with three in five saying the pandemic has been “extremely disruptive” (37%) or “very disruptive” (24%) to their business with another quarter reporting “somewhat disruptive” (23%). Smaller companies (1-9 employees) are more likely to report an extreme disruption than slightly larger companies of 10-49 employees (41% versus 33%).
Within their businesses, contractors are facing numerous problems particularly as related to business development and getting projects scheduled and started.
Additionally, the trend in increased DIYing during the stay-at-home orders has translated into a real concern that homeowners may look to take on more projects themselves rather than hire contractors. Nearly half of small contractors say they are “extremely concerned” (22%) or “very concerned” (23%) that more DIY may displace them.
With all these fears, there is a genuine level of concern about their future. One in five (20%) are “not optimistic at all” about their future business prospects, with an additional 39% just “somewhat optimistic.”
They also feel personally vulnerable to COVID-19…
The majority (56%) of contractors feel their life or the life of a loved one is threatened by COVID-19.
With many feeling very concerned about COVID-19’s impact on their families. Roughly two-thirds report being “extremely concerned” (34%) or “very concerned” (31%) for them and their families.
Which understandably has led to safety and wellness as their two biggest priorities for information during this pandemic. Over half are specifically looking for information on safety measures and precautions (55%) or on health and wellness (53%). They are less likely to report a need for information on growing their business (30%) or customer engagement (40%), despite business development being such a concern for the business. For most, job one is to find a way to get through today with all the health obstacles thrown in their way.
So, who do they feel is giving them a helping hand?
No entity is seen as truly championing the small contractors. Governments are leading the way with help followed by home improvement retailers and financial institutions. Roughly one in seven contractors report that building products brands are providing them a helpful hand.
And across the board, the smallest of contractors (1-9 employees) are far less likely to report getting aid than those slightly larger with 10-49 employees.
Amongst retailers, The Home Depot, followed by Lowe’s are stepping up during this time.
And when we dig into what actions they have taken; we see their focus has been on safety and accessibility. They are providing support and guidance to help contractors while out in the field to maintain good health and allowing them to continue to earn.
Small contractors are in a fight to stay afloat and are looking for help to get them through these turbulent times. There are opportunities for brands to step up and be the empathic champion for the contractor community. Keys to doing so include:
Help them stay safe while still earning
Give them advice and ideas that keep them in the field while maintaining good health
Be the fuel of their business future
Partner with them to enhance homeowners’ confidence in feeling safe and secure hiring them
Don’t forget the little guys
Make it easy for them to find and access help, as well as aligning support within local contractor communities
The Methodology
Shapiro+Raj conducted an online survey with a national sample of residential contractor professionals between April 2nd and 5th, 2020. In all, 204 contractors were surveyed, with a mix of job types from general contractors, handymen, remodelers, painters, etc. All were screened to be small businesses of fewer than 50 employees.
Shapiro+Raj
S+R is a research and strategy firm that uses social and behavioral sciences to solve the toughest business and marketing challenges. Our next-gen methods dig deep to unlock market-ready insights. Then our brand planners turn these into strategic marketplace actions that create brand evolution and innovation; customer experiences and loyalty; and new platforms for growth.
